To The Moon

As we see more and more ETFs getting approved. This begs the question of whether we should be investing in Crypto? What are the potential changes that can happen in the next 6 months? And what can we do now?

I have been Dollar Cost Averaging into BTC and ETH primarily over the last 12 months and this was to just accumulate crypto into my portfolio. And in the last 6 months, the DCA kinda got me buying crypto high prices because of the increase in prices, but for me, it was mainly to keep myself committed and just bite the bullet of buying them without thinking too much of the prices.

But I was lucky as well, to be able to catch some waves and still be on the green side of things.

What to expect in the next 6 months?

With ETH ETFs getting approved just a couple of days ago. What I think will and can happen is we will see an influx of money going into the ETH markets then we will see some dips in the prices like how the BTC ETF had some dips.

To make it simple, I like to think of this like a BlackJack table. If there are 5 players with $100 each, the maximum a player can win is $400, and this would mean that the other 4 players will lose everything. Without new money or players coming in, this would mean that money don’t move and it will just be exchanging hands.

Similar to crypto, with the ETFs coming in and getting traded. This will bring tradfi money into crypto. Because it opens up doors to other funds to purchase BTC or ETH ETFs.

TLDR: Prices will pump for a couple of weeks, then start to normalise again.

How to capitalise?

One of the biggest question here is, how to capitalise and get the most out of this? Personally, I have started moving my crypto into DeFi protocols to capitalise on Yields. For example, I sold some of my crypto when there was pump and held on to stablecoins waiting for a re-entry point.

At this point, my stablecoins are in a DeFi Protocol earning 10-14% yield which is higher than what MMF can offer but also holds higher risk.

USDC yielding 14% APY

I also have some BTC in an options protocol that is giving about 20-30% APY through an algorithm options strategy. So this will help to churn some BTC passively for me. Be it prices up or down, I will earn some BTC on profitable trades.

If you are familiar with DeFi protocols, having some exposure to earn some yield while waiting for a re-entry during the dips can be something to consider. Like we have seen with the BTC ETF release, we had a huge surge in prices then a subsequent dump afterwards.

BTC ETF released in Jan'24 some dips inbetween then and now.

At the end of the day, there’s no right or wrong strategy because it depends on how deployed you are and how your lifestyle is. But if you wish to chat more, please leave a comment and I’ll reply them as much as I can!